Study On The Impact Of Audit Strategy Choosing On The Audit Failure

The enterprise conveys the business situation to the outside through publishing the financial reports.When people are analyzing the financial statements,they not only looking for investment information,effective integration of investment resources,increase their wealth,but also to correctly identify the true and false financial information,so as to understand the company's real operating conditions,safeguard their own interests.The audit of the financial statements is particularly important.In these events,the audit staffs more or less use the improper audit strategies,which eventually led to the audit failure.Audit strategy refers to the whole process of the audit,the auditors take the audit technology,the use of audit methods,reference to the audit experience for different audit procedures.Audit strategy refers to the whole process of the audit,the audit staff to take the audit technology,the use of audit methods,drawing on the experience of the general in different stages of the audit process.Properly use audit strategies would help auditors to collect audit evidence and identify audit risk better,then find the problem of the financial statements to order the audit opinion.Therefore,the writer intends to start from audit failure caused by improper auditing strategies,focusing on which audit strategies auditors should use when auditing unfamiliar industries,then they can avoid the audit failure.The writer adopts the method of normative research and case analysis.To begin with,the writer reviews the audit strategy and the definition and the reasons of audit failure of the literature.And concretely analyzes the concept of audit strategy selection,definethe concept of audit failure.Through the discovery of financial products to Fuxin Zhenlong Native Ltd.false information disclosure and withdraw of the IPO application,and discusses the reason of audit failure caused by improper audit strategies of auditors in the audit process.Finally,the writer puts forward some suggestions to refine the audit strategy and other suggestions.The specific suggestions about refining the audit strategy:(1)The implementation of personalized audit procedures.Use different industries in different audit procedures,for each of the audited units of the key risk projects,use targeted audit procedures.(2)The use of the ratio of analysis or trend analysis,absolute or relative number analysis,the financial information and the industry information for horizontal and vertical comparison,the results have been compared with the expected results of the method of review of financial information.(3)Implementation a deeper understanding process,from inside and outside the two aspects of understanding of the company's operations.And field investigation.At the same time,changes in audit sampling methods and audit time,so that the audited unit can not be prepared in advance.(4)The implementation of inventory counting procedures.The preparation of production costs and the cost of the main business back rolling table,and cross-referencing with related subjects.(5)Implementation of the inquiry procedure.Auditors in the implementation of the inquiry procedures must pay attention to the way of asking questions,master the skills of inquiry,beating around the side of the inquiry,to avoid asking people to have psychological preparedness to simple and easy way to ask.While making recommendations for other areas,Such as strengthening the independence of the CPA building,to improve the CPA should be prudent and concerned about the practice to enhance the CPA's professional competence.